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HMRC internal manual

Animation Production Company Manual

Claims: details to be provided

Single-period productions

Animations in respect of which the Television Production Company (TPC) is entitled to claim Television Tax Relief (TTR) may be completed within a single accounting period.

The claim will be made after completion, and the TPC should generally possess final information on the animation’s budget, its British status and the extent of UK core expenditure which it must supply with its tax return submission.

The company should supply the following additional information with its tax return submission:

  • the title of the animation in respect of which relief is being claimed;
  • a final certificate from the Department for Culture, Media & Sport (DCMS), showing that the animation is British (APC40030);
  • the DCMS reference number, if known;
  • final statements of the amounts of:

    • total core expenditure (APC50010) on the programme (whether by the TPC or other parties to its production);
    • core expenditure by the TPC (or, in the case of a co-production, by all the co-producers) on the animation that is UK expenditure in order to demonstrate that the minimum UK expenditure condition (APC40040) has been met and that the animation has met the 51% requirement for total core expenditure on animation;
  • the amount of additional deduction claimed (APC55020); and
  • the amount, if any, of loss surrendered for payable credit (APC55100).

This is part of the normal self-assessment process, and although the TPC is required to keep adequate records to support its return, it is not specifically required to provide audited figures.

It will assist the processing of claims if TPCs could also include:

  • A breakdown of the expenditure on television production activities. The level of appropriate detail will depend on the size of the budget. Generally the headings adopted by the production accountant are adequate. The Creative Industries Unit (contact details at APC10020) can provide further advice if needed.
  • An analysis of that expenditure into:

    • non-production expenditure
    • core expenditure: Development
    • other core expenditure: UK
    • other core expenditure: non-UK
    • core expenditure: proportion of total core expenditure on non-animation
    • delivery/distribution costs
  • Details of any methods of apportionment and/or assumptions used in producing these figures and any other information relevant to the claim.

Multi-period productions

Where the production of the animation spans more than one accounting period the information required to support any claim is similar to that set out above. However, the final numbers may not yet be available. The company should state the planned amounts of:

  • Core expenditure: UK
  • Core expenditure: Total

Final figures not available

Where the TPC retains an interest in the programme after its completion and may be obliged to make payments related to its production in later periods it may be necessary to estimate the final amounts of total core expenditure and core expenditure that is UK expenditure - see APC40040 and TPC40040 for details of how such future obligations impact on the minimum UK expenditure condition and the animation status of a programme that includes animation.